{"id":37592,"date":"2018-09-10T19:03:42","date_gmt":"2018-09-11T00:03:42","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37592"},"modified":"2018-09-10T19:03:42","modified_gmt":"2018-09-11T00:03:42","slug":"james-grant-responds-to-the-bernanke-paulson-geithner-op-ed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37592","title":{"rendered":"James Grant Responds To The Bernanke-Paulson-Geithner Op-Ed"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-09-10\/james-grant-responds-bernanke-paulson-geithner-op-ed\"><span class=\"field field--name-title field--type-string field--label-hidden\">James Grant Responds To The Bernanke-Paulson-Geithner Op-Ed<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1293\" data-gtm-vis-first-on-screen-2077925_22=\"1293\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div><em>Authored by James Grant of <a href=\"https:\/\/www.grantspub.com\/\">Grant&#8217;s Interest Rate Observer<\/a><\/em><\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><strong>Wealth defect<\/strong><\/p>\n<p>Over the weekend, Global Financial Crisis-era policymakers Ben Bernanke, Timothy Geithner and Henry Paulson brought the band back together to pen a <a href=\"https:\/\/www.nytimes.com\/2018\/09\/07\/opinion\/sunday\/bernanke-lehman-anniversary-oped.html\"><em>New York Times <\/em>opinion piece<\/a>. After sharing their self-exonerating analysis of the events of 2007-2009 and subsequent response (which one of the three did the fact checking?), Bernanke et al. argue for greater regulatory powers, or as they put it, \u201cadequate firefighting tools,\u201d to resolve future financial crises.<\/p>\n<p>Blanket guarantees of bank debt by the Federal Deposit Insurance Corporation, the Fed\u2019s emergency lending capabilities and the Treasury department\u2019s guarantee of money market funds are among the mechanisms cited by the authors as necessary for crisis prevention and mitigation.<\/p>\n<p>The trio write:<\/p>\n<blockquote><p>We need to make sure that future generations of financial firefighters have the emergency powers they need to prevent the next fire from becoming a conflagration. We must also resist calls to eliminate safeguards as the memory of the crisis fades.\u00a0 For those working to keep our financial system resilient, the enemy is forgetting.<\/p><\/blockquote>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/bernanke%20geithner%20paulson.jpg?itok=tudbYhuo\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/bernanke%20geithner%20paulson.jpg?itok=tudbYhuo\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/bernanke%20geithner%20paulson.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/bernanke%20geithner%20paulson.jpg?itok=tudbYhuo 1x\" alt=\"\" width=\"500\" height=\"332\" data-entity-type=\"file\" data-entity-uuid=\"f9a581b2-9242-40a3-9de2-f2017f6f0754\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>Alternatively, the monetary mandarins could take a cue from Peter Fisher, former executive vice-president at the Federal Reserve Bank of New York and senior fellow at the Tuck School of Business. Speaking on policy normalization at the Grant\u2019s spring conference on March 15, 2017, Fisher offered a commanding critique of the crisis-era response led by the authors of this weekend\u2019s Times piece. Written 18 months ago, the below passage could serve as a direct rebuttal to the authors, particularly former\u00a0Fed chair Bernanke:<\/p>\n<blockquote><p>Curiously, the Fed has acknowledged no failures. All the experiments have been successful, every one: no failures, no negative side effects, no perverse consequences, only diminishing returns.<\/p><\/blockquote>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>James Grant Responds To The Bernanke-Paulson-Geithner Op-Ed Authored by James Grant of Grant&#8217;s Interest Rate Observer Wealth defect Over the weekend, Global Financial Crisis-era policymakers Ben Bernanke, Timothy Geithner and Henry Paulson brought the band back together to pen a New York Times opinion piece. After sharing their self-exonerating analysis of the events of 2007-2009 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[68,303,2240,20921,9301,9300,1921,21596,3650,4318],"class_list":["post-37592","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ben-bernanke","tag-fed","tag-global-financial-crisis","tag-henry-paulson","tag-interest-rate-observer","tag-james-grant","tag-new-york-times","tag-timothy-geithner","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37592"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37592\/revisions"}],"predecessor-version":[{"id":37593,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37592\/revisions\/37593"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}